Debt investors

Kingfisher finances its operations using a number of funding instruments, including medium term note debt, bank borrowings and leases.

Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayments of debt at its maturity, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or unexpected impacts to cash inflows (for example, COVID-related temporary store closures). To retain financial flexibility, we aim to maintain strong liquidity headroom (including cash and cash equivalents, and committed debt facilities), which is currently set at £1 billion.

As a result of the Group’s strong cash position, the Group ended the period with £0.9 billion (2020/21: £1.4 billion) of net debt on its balance sheet including £2.3 billion (2020/21: £2.5 billion) of total lease liabilities. The ratio of the Group’s net debt to EBITDA was 0.5 times as of 31 July 2021 (0.9 times as of 31 January 2021). At this level, the Group has the necessary financial flexibility during this current period of heightened uncertainty, whilst retaining an efficient cost of capital. Over the medium term, the Group’s objective is a target of c.2.0 times net debt to EBITDA.

Net debt to EBITDA is set out below:

 

2021/22

Moving annual total
£m

2020/21

Year end

£m

Retail profit

1,237

1,003

Central costs

(53)

(54)

Depreciation and amortisation

545

536

EBITDA

1,729

1,485

Net debt

908

1,394

Net debt to EBITDA

0.5

0.9

On 21 September 2021, Kingfisher announced its intention to return £300 million of surplus capital to shareholders via a share buyback programme. The programme will commence soon after 21 September 2021.

For any questions or queries please contact:

Bridget Scheuber
Head of Treasury
treasury@kingfisher.com

Maj Nazir
Group Investor Relations Director
investorenquiries@kingfisher.com